Turnover Decreases in Healthcare Staffing Industry, Dedicare Sees Decrease in Demand
According to a recent report by Kompetensföretagen, the industry organization for staffing and recruitment companies, growth in the healthcare staffing industry has significantly slowed down. The data, compiled by Ecot, reveals that the worst decline in turnover is observed in the sector that supplies personnel in healthcare and care services. During the second quarter of 2023, turnover in this particular segment decreased by a staggering 16 percent when compared to the same period last year.
Dedicare, one of the leading providers of healthcare professionals in the country, is feeling the impact of this slowdown in demand. Eva Brunnberg, the CEO of Dedicare, confirmed in a recent radio interview that the company has witnessed a decline in demand from its customers. The decrease in turnover aligns with the organization’s findings and highlights the challenges faced by healthcare staffing companies in the current market.
It is worth mentioning that several regions in the country have aimed to reduce their costs associated with hiring healthcare staff on contracts. Region Stockholm, for instance, has managed to slash its costs by a third, amounting to SEK 160 million, from April to June this year. This reduction in costs has been achieved by limiting the reliance on contract doctors and other healthcare personnel. Other regions, including Region Sörmland, Region Blekinge, Region Kronoberg, and Region Kalmar County, have also set similar cost reduction goals.
Patrik Eidfelt, CEO of Kompetensföretagen, expressed his concerns over the dwindling demand for healthcare personnel in an interview with the radio. He emphasized that reduced demand negatively impacts profit-making businesses operating in this field. The industry is grappling with the challenges posed by tighter budgets in various regions, leading to a downturn in turnover for staffing companies such as Dedicare.
The implications of these findings highlight the need for the healthcare staffing industry to adapt to the changing demands of the market. As regions continue to cut costs, companies like Dedicare will need to explore new strategies to sustain their business and find alternative revenue streams. The long-term effects of this slowdown in the industry remain uncertain, but companies and industry stakeholders must remain vigilant and proactive in navigating these challenging times.
Source: Lakartidningen.se 2023-08-30